Sharekhan's research report on Trent
Trent’s Q4FY25 performance was beat our expectation on all fronts with standalone revenue/adjusted PAT rising 29%/21% y-o-y, respectively and EBITDA margin rising by 101 bps y-o-y to 16% (versus 14.8% expected). Revenue growth was driven by store additions (~29% y-o-y net additions) and a mid single-digit life-for-like (LFL) growth in the fashion concepts. Gross margins of Westside and Zudio remained consistent. Trent added 10 Westside and 130 Zudio stores (net) in Q4 taking the count to 248 Westside stores across 86 cities and 765 Zudio stores across 235 cities at FY25-end. Stock has corrected by 26% from recent highs and is trading at 48x/39x its FY26E/FY27E EV/EBITDA, respectively.
Outlook
We maintain Buy with an unchanged SOTP-based PT of Rs. 6,609.
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